Nigeria’s inflation rate continued its upward trajectory in December, reaching 34.80%, marking the fourth consecutive month of rising prices, according to the latest data released by the National Bureau of Statistics (NBS). This represents a slight increase from the 34.60% recorded in November.
The NBS attributed the rise in inflation primarily to increased demand during the festive season, as consumers typically spend more during this time of year. The data also revealed a slight decrease in food inflation, which stood at 39.84% year-on-year in December, compared to 39.93% in November. However, food prices remained high, with significant increases noted for key staples like sweet potatoes, rice, and beer.

The persistent inflationary pressures are a continuation of the economic turbulence triggered by significant policy changes implemented in 2023. These changes included a controversial devaluation of the naira and cuts to fuel subsidies, measures aimed at addressing Nigeria’s deep fiscal challenges and stimulating long-term economic growth. However, these reforms have contributed to higher living costs for millions of Nigerians.
While inflation initially showed signs of easing over the summer, the subsequent hike in fuel prices has led to renewed increases in inflation, exacerbating the nation’s ongoing cost-of-living crisis. The rise in fuel prices, along with the devaluation of the naira, has strained household budgets and eroded purchasing power.

In response to these challenges, the Nigerian government has set an ambitious target to reduce inflation to 15% by the end of 2024. Officials believe that the reduction in petroleum imports, coupled with other economic stabilization measures, will help bring inflation under control. However, experts remain cautious, warning that external factors such as global commodity prices and the volatility of the naira could continue to influence inflation trends in the coming months.
As Nigeria grapples with these inflationary pressures, the government’s ability to manage the country’s economic recovery will remain a critical issue, particularly as the rising cost of living continues to affect everyday Nigerians.